The greenback is finding some steadier footing on the day but remains pinned lower against commodity currencies as risk sentiment tilts slightly more positively on the session. EUR/USD has fallen off from 1.0750 to 1.0710 in European morning trade, with the high earlier touching 1.0765. Large option expiries may be a factor though, as pointed out earlier with the pair seeing a significant chunk around 1.0760-80 – helping to cap gains.
The same can be said for USD/JPY which is keeping close to 127.00, where there are a host of option expiries layered around the figure level. That said, the US PCE price index will be a key risk event to watch for any potential action in the session ahead.
The dollar is keeping steady and somewhat little changed now against the euro, yen, pound and franc. However, it is trading lower against the commodity currencies. USD/CAD is down 0.2% to 1.2740, its lowest in three weeks.
Meanwhile, AUD/USD is trading up 0.6% to test its 38.2 Fib retracement level of the swing lower since April:
That is a key technical level to watch before the pair looks towards 0.7200 and then the 100-day moving average (red line), now seen at 0.7229.
NZD/USD is in a similar predicament, testing its own 38.2 Fib retracement level at 0.6529 on the day:
